Invited by the President of the Paraguayan Parliament, Raoul Latorre, I was a guest in Paraguay last week to participate in a ‘Patriots Network’ conference. It is striking that an increasing number of Europeans (political refugees?) who have fled the continent are currently staying in Paraguay. Large groups of Germans, Dutch, and Flemish, as well as other European nationalities, form distinct communities there with their own villages and small towns. What drives someone to start a new life in another, foreign continent, a 12-hour flight away?

By Filip Dewinter
I asked the Dutch author Sid Lukkassen, who lives and works there and recently published a new book, ‘What the World can learn from the fall of the West’. The book largely outlines what went wrong and why, and continues to go wrong, in Europe, and therefore offers an unsolicited answer as to why South America proves to be an alternative.

The Blue Tide
To understand what is happening in South America, a basic understanding of the continent's political history is essential. The ‘Blue Tide’ is the name given to the right-conservative and right-nationalist populist wave in South America during the mid-2010s and 2020s.

The ‘Blue Tide’ was a reaction to the ‘Pink Tide,’ during which primarily left-wing and far-left parties were in power. In countries such as Argentina (Javier Milei) and Brazil (Jair Bolsonaro), outspoken right-wing politicians came to power. The same thing recently happened in smaller countries as well (Ecuador, Panama, Bolivia, Honduras, Costa Rica…).

The election of the right-wing nationalist candidate, Antonio Kast, in Pinochet’s Chile was also a pleasant surprise. Countries such as Argentina, but certainly also El Salvador (Central America), prove that concrete results can be achieved. Since Nayib Bukele came to power, the country has become the safest in the region, rather than one of the most unsafe.

Bukele cracked down hard on the drug mafia, including through the deployment of the army and the construction of a high-security mega-prison (CECOT). El Salvador's robust security policy, therefore, serves as a model for the approach to the drug mafia throughout Central and South America.

Tax haven Paraguay
Paraguay is particularly attractive due to its libertarian governance: few rules and laws, a small government, and low taxes. Anyone wishing to travel to Paraguay as a European or start a business there does not even need a visa; a one-day stay in Paraguay per year is sufficient.

Paraguay also offers a highly competitive territorial tax system, generally taxing only income generated within the country at a low flat 10% rate for both individuals and corporations. Key features include a 10% VAT, a 5%-15% dividend tax and no wealth or inheritance taxes, making it an attractive hub for foreign investors and résidents.

For those fed up with the sky-high tax burden in Europe, Paraguay is therefore a (tax) paradise.

European values under pressure
But there is more to it… In my speech at the ‘Patriots Network’ conference in the capital of Paraguay, Asunción, I stated the following:

“Allow me to begin with an observation that is becoming increasingly difficult to ignore: a growing number of Europeans no longer look to the future of their own continent with automatic confidence.

Where Europe once stood for cultural richness, civilisation greatness, economic progress, stability, and freedom, many today experience a sense of alienation. Not because they reject their own civilisation, but because they feel that fundamental values are under pressure.”

In several European countries, under the influence of political correctness and globalism, we are witnessing a profound societal transformation. Large-scale migration flows have, in a short period, altered the social fabric, often without any support from the population.

 Our European population is, at a rapid pace, being replaced by increasing numbers of third-world migrants from Africa. Alongside this demographic change, our way of life is being replaced by a society influenced by Islam, where the separation of church and state, equality between men and women, and freedom of speech are increasingly being called into question.

At the same time, many citizens feel that critical voices on these issues can no longer be freely expressed without social or legal consequences. Freedom of speech, a cornerstone of European democracy, has, in their view, become an illusion.

Additionally, some in the population resist the ideological redefinition of traditional norms and values, particularly regarding family and identity.

So-called alternative forms of living are increasingly replacing the traditional family. Some see LGBTQ and woke ideologies as causing disruption, while the Christian values that once formed the foundation of European society are being cast aside.

It is therefore no coincidence that Paraguay is increasingly mentioned as a country of hope and reorientation. Not because Paraguay is perfect—no country is—but because it offers something that is becoming rarer elsewhere: a sense of freedom, strong respect for tradition, family and community, and a healthy entrepreneurial climate.”

Hope for Europe
Is the above argument a call to move en masse to South America? Have I given up all hope for a positive future for Europe? Quite the opposite. However, the shift to the right in South and Central America shows that there is an alternative.

A firm and forceful approach to crime and the drug mafia; standing up for family values; no stifling rules and laws and a small government; low taxes and levies that stimulate investment and free initiative; patriotism and pursuing a 'people first' policy... are the cornerstones of the successful policies of many South and Central American countries.

Of course, these countries are far from perfect. There is still too much social inequality; there is no, or an insufficient, social safety net; corruption is far from being overgrown, and the infrastructure can and must be better, but it is clear that, under the impetus of right-nationalist, right-conservative governments, things are moving in the right direction.

Europe at a crossroad
I summarised the conclusion during my speech in Asuncion as follows:

“Europe today stands at a crossroads. The debate there is far from settled. But what is clear is that many Europeans are once again searching for stability—for communities where they feel at home, where values are not constantly questioned, but shared.

Allow me to conclude with a simple thought: a strong nation is not one without change, but one that knows how to anchor change in its own identity. And as long as you continue to cherish that identity, your country, Paraguay, will not only remain attractive to others, but above all strong and recognisable to itself.”